Should You Buy or Sell First? It’s Scott, here! One of the most popular questions my clients pose is whether they should buy or sell first. The long and short of it is this: it depends! Each situation has unique circumstances and needs to be treated individually. So when deciding if you should buy or sell first, you need to take a good look at the state of the housing market. Home Owners Dilemma – Buy First or Sell First
Is it a hot buyer’s market? Then you might want to sell your home before buying your next one. If the market is favouring sellers, it would make more sense to find your next property first, as you know your current home would sell quickly (though this is never guaranteed). Without a doubt, the market is constantly changing. So it’s important to do your research. Hire a real estate agent to ensure you aren’t stuck in between a changing market.
Buying your next Home First
Important to realize, the great thing about buying first is there’s less pressure to find a home immediately. Without the threat of your current home’s closing date looming in the background. You can view more homes worry-free. Then really focus on finding a place that checks off most, if not all, of the boxes on your wish list. To the end that, it’s also less likely that you’ll end up settling. Finding yourself unhappy with your choice down the road.
At the same time, it’s important to get your finances in order and set your budget as you begin searching for your new home. Consult your bank to find out if bridge financing makes sense for your situation. Though the interest can definitely be much higher than conventional financing. You’ll be able to make more favourable offers with less conditions. In addition, find out about getting a home equity line of credit in place for your next home. This way, you can pay it off at any time. And you only pay interest on the money you actually borrow.
Selling Your Current Home First
Selling first definitely creates less strain on your wallet. Not only will you not have to worry about carrying the cost of two properties and high interest payments when you buy. But it’s also less likely that you’ll have to lower your asking price for a quick sale.
Though there are definitely pros to selling first. You also have to consider what your plan will be if you don’t find your new home right away. Will you stay with relatives? Find a short-term rental? In this case, you also run the risk of having to move your things twice (to a storage locker or a rental, and then to your new home). Which will cost you money and time.
My clients Roger and Michelle had 30+ years of belongings and planned on relocating to another community outside the city. Unfortunately, they struggled to find a property and ended up having to rent two extra-large lockers to store their items. This was a quick fix and not an ideal situation since they had to move everything twice, not to mention it added to an already stressful situation.
Buy First or Sell First – Home Owners Dilemma
In the meantime…
While you’re deciding whether to buy or sell first. It’s important to start preparing for both the buying and selling process.
Even if you’re just in the beginning stages of downsizing, now is the time to do those home projects you’ve been putting off. Check out my list of the smartest household renovations you can make for the best return on your home, as well as this article about the home renovations that might actually hurt the value of your home.
Like most of us, you’ve probably lived in the same home for 20+ years. This means that, like most of us, you probably have 20+ years of stuff. It might take you several months of hard work to get ready to list, so the earlier you start decluttering, the more ready you’ll be to move when you come across the perfect home!
Further, if you’re considering moving somewhere outside of the GTA, start exploring the areas you’re interested in, books some viewings, and ask yourself some important questions:
• Can you see yourself in the community?
• Does the area have the kind of home you’re looking for, whether it be a condo, townhouse, bungalow, etc.?
• Are you happy with the distance between you and your loved ones?
• Does it have the attractions and amenities you’re looking for?
• Does it suit your lifestyle?
In conclusion to Buy First or Sell First – Home Owners Dilemma
So many of my clients choose to stay in the GTA. In this case, if you’re looking to right-size in your own neighbourhood, you’re ahead of the game! You already know the area, so it’s just a matter of booking some viewings and really asking yourself what you want in a new home.
And lastly, talk with me and find out what your house is worth in the current market. When is the best time to sell? Likewise, when is the best time to buy? I’ll help you find the answers!
Ultimately, it’s all about staying informed, asking questions, and making sure you’re prepared before you make the decision to buy or sell first. Each situation is unique. My take on it is that you need to be ready on both ends of the process. Give me a call at (647) 223-0237 so I can advocate for you and help you through the buying and selling process!
Buy First or Sell First – Home Owners Dilemma Video